UK Shoppers Avoid High Streets on Black Friday Amid Fears Over Economic Woes
Shoppers flocked to the high streets on Black Friday, but a surprisingly low turnout suggests that consumer spending may be starting to show signs of fatigue. Data from the MRI Software company shows that visitors to all UK shopping destinations were down 2% compared to last year's equivalent days, with locations near central London offices bucking the trend.
The disappointing data comes as fears grow over the state of the economy, with many economists predicting a slowdown in growth for next year. The Confederation of British Industry's services sector survey showed the fastest decline in optimism about the general business situation for three years, while the Institute of Directors' economic confidence index was at a near record low.
Retailers were also hit by weak consumer spending on Black Friday, with many online sales proving inconsistent. The online retail association IMRG reported that sales were down heavily on Thursday but up on Tuesday, highlighting the unpredictability of the key shopping weekend.
Analysts point to a "cost of living squeeze" as one factor contributing to the slowdown in consumer spending, while KPMG's chief economist Yael Selfin warned that unemployment is ticking up to 5.2% and could further dampen growth prospects for next year.
The government's budget, which introduced measures aimed at supporting struggling businesses, has been met with skepticism from many in the hospitality sector. The Campaign for Pubs warned that many pubs would face big increases in business rates, potentially leading to a "pub apocalypse".
While some retailers may benefit from lower tax rates announced by Chancellor Rachel Reeves, others are set to face significant hikes. As one pub chain owner put it, the promised reduction in bills is unlikely to materialize, and could instead lead to businesses paying more.
The mixed picture on Black Friday highlights the uncertainty and caution that many consumers are displaying when it comes to spending. With economic growth prospects looking subdued, it remains to be seen whether this slowdown will prove temporary or a harbinger of things to come.
Shoppers flocked to the high streets on Black Friday, but a surprisingly low turnout suggests that consumer spending may be starting to show signs of fatigue. Data from the MRI Software company shows that visitors to all UK shopping destinations were down 2% compared to last year's equivalent days, with locations near central London offices bucking the trend.
The disappointing data comes as fears grow over the state of the economy, with many economists predicting a slowdown in growth for next year. The Confederation of British Industry's services sector survey showed the fastest decline in optimism about the general business situation for three years, while the Institute of Directors' economic confidence index was at a near record low.
Retailers were also hit by weak consumer spending on Black Friday, with many online sales proving inconsistent. The online retail association IMRG reported that sales were down heavily on Thursday but up on Tuesday, highlighting the unpredictability of the key shopping weekend.
Analysts point to a "cost of living squeeze" as one factor contributing to the slowdown in consumer spending, while KPMG's chief economist Yael Selfin warned that unemployment is ticking up to 5.2% and could further dampen growth prospects for next year.
The government's budget, which introduced measures aimed at supporting struggling businesses, has been met with skepticism from many in the hospitality sector. The Campaign for Pubs warned that many pubs would face big increases in business rates, potentially leading to a "pub apocalypse".
While some retailers may benefit from lower tax rates announced by Chancellor Rachel Reeves, others are set to face significant hikes. As one pub chain owner put it, the promised reduction in bills is unlikely to materialize, and could instead lead to businesses paying more.
The mixed picture on Black Friday highlights the uncertainty and caution that many consumers are displaying when it comes to spending. With economic growth prospects looking subdued, it remains to be seen whether this slowdown will prove temporary or a harbinger of things to come.
. Like, I get it, cost of livin's high and all that, but what about the people who are still workin hard? 
. It's not like they can just magic up more money outta thin air. And don't even get me started on the pub apocalypse... 
. Like, is this really how we're gonna make a livin now? 
.
like, yeah retail is tanking and people are being all cautious with their cash but then again, maybe they're just getting smart about it? i mean, who needs to overspend when you can save up for a rainy day? 
or maybe retailers need to step up their game and stop relying on Black Friday madness? it's like, what's the point of even having sales if people aren't gonna buy? 
it's like people are trying to ignore the economic reality. 2% less shoppers is a big deal and i think we're all just getting tired of overspending during the holidays. plus, the government's budget didn't exactly help with the whole cost of living squeeze thing. i mean, pubs are gonna have to pay more in business rates? that's just not fair to independent businesses 
. So maybe this slowdown isn't just an economic thing... maybe it's a sign that we're finally starting to reevaluate our priorities as a society 
.
, but one thing's for sure: being smart with your money is the best kind of smart 
.
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... the whole thing feels like a circus, you know? 
and now the government's trying to make it even worse with those business rate hikes 
... it's just another way for them to line their pockets while the rest of us are stuck with the bill